Fierce competition for central London property
Tuesday, 21 February 2012 8:54 AM
The prime central London market is seeing extraordinary levels of competition between buyers for the limited amount of property on sale, according to Cluttons.
The property consultant said demand from domestic and overseas buyers is close to record high levels and has caused a 25 per cent drop in stock levels since the start of the year.
Hotspots like Chelsea and South Kensington have seen such strong demand that deals are being agreed within hours of a property coming on to the market, often after just one viewing.
And some buyers frustrated by a lack of options are agreeing to pay more than the asking price to get a home on a specific road.
Cluttons recently sold two flats on Onslow Square in South Kensington by sealed bids, with deals agreed more than £100,000 above the asking price. And it says this demonstrates underlying confidence that values will continue to appreciate.
Charlie Noel-Buxton, partner for residential sales at Cluttons, said: "We believe registered demand underestimates the underlying level, with new instructions attracting a rush of applicants who aren't registering with agents until they see a property they like.
"It's a seller's market, and those who need to sell this year can expect to benefit from a lack of competition from other sellers, combined with near record levels of buyer interest."
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